Take-off still delayed: German aviation’s slow recovery
Deutsche Bank Research | 2024-10-28 11:00
Key points
- German aviation is recovering more slowly than expected, with passenger numbers still well below pre-pandemic levels.
- The sector is facing a number of challenges, including high costs, a shortage of skilled workers, and geopolitical uncertainty.
- The government needs to take steps to support the sector, including providing financial assistance and investing in infrastructure.
Analysis
German aviation is recovering more slowly than expected, with passenger numbers still well below pre-pandemic levels. In the first half of 2023, passenger numbers at German airports were down by 20% compared to the same period in 2019.
The sector is facing a number of challenges, including high costs, a shortage of skilled workers, and geopolitical uncertainty.
High costs
The aviation sector is facing a number of high costs, including fuel, labor, and maintenance. The war in Ukraine has pushed up the price of fuel, and airlines are also facing higher labor costs as they compete for a limited pool of skilled workers.
Shortage of skilled workers
The aviation sector is also facing a shortage of skilled workers. This is due in part to the fact that many workers left the sector during the pandemic, and it is now difficult to attract new workers due to the high cost of living in Germany.
Geopolitical uncertainty
The war in Ukraine has also created geopolitical uncertainty, which is deterring some people from traveling. This is particularly true for long-haul flights, which are more likely to be affected by geopolitical events.
Government support
The government needs to take steps to support the aviation sector. This could include providing financial assistance, such as loans or grants, and investing in infrastructure, such as new airports and terminals.
The government could also provide support by reducing the regulatory burden on the sector. This could include streamlining the process for obtaining permits and licenses, and reducing the cost of compliance.
Conclusion
German aviation is facing a number of challenges, which are delaying its recovery. The government needs to take steps to support the sector, including providing financial assistance and investing in infrastructure.
Take-off still delayed: German aviation’s slow recovery
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Podzept from Deutsche Bank Research a new article on 2024-10-28 11:00 titled “Take-off still delayed: German aviation’s slow recovery”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
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